Bevin Administration Orders 1% Cut to State Agencies to Help Avoid Shortfall

Kentucky's state agencies will cut 1% from their budgets to help avoid a $113 million shortfall.

State Budget Director John Chilton ordered the cuts in a letter sent to state cabinet secretaries last week. The letter is in response to economists' projection that the state will not collect enough money in taxes to cover its expenses by the end of the fiscal year on June 30.

Chilton said in the letter he was discussing with Governor Matt Bevin "about any official actions that should be taken to address the budget shortfall."

Next year could be just as bad. Chilton said cabinet secretaries should plan for more cuts because state economists are now predicting "a similar shortfall" for the 2018 fiscal year.

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State budget director John Chilton says Kentucky is on track to take in $113.2 million less than predicted by the time the fiscal year ends on June 30, meaning Gov. Matt Bevin might have to take emergency actions to balance the state budget.